Profit maximisation vs. agency: an analysis of charitable giving by UK firms

S Brammer; A Millington

doi:10.1093/cje/bei036

Profit maximisation vs. agency: an analysis of charitable giving by UK firms

S Brammer^*, A Millington

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

33 Citations (Scopus)

Abstract

The charitable giving of a large sample of publicly quoted UK firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving. The empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions. Firm size and advertising intensity are found to be positively associated with the probability of participation in giving. Stricter corporate governance and the rate of directors' remuneration are negatively related to the probability of participation. Among givers, the rate of giving is related positively to R&D intensity, the rate of directors' remuneration, and corporate profitability and negatively to firm indebtedness.

Original language	English
Pages (from-to)	517-534
Number of pages	18
Journal	Cambridge Journal of Economics
Volume	29
Issue number	4
DOIs	https://doi.org/10.1093/cje/bei036
Publication status	Published - 4 Jul 2005
Externally published	Yes

Keywords

corporate social responsibility
charitable giving
CORPORATE SOCIAL PERFORMANCE
CIGARETTE CONSUMPTION
OWNERSHIP STRUCTURE
PHILANTHROPY
HOUSEHOLDS
MEAT

Access to Document

10.1093/cje/bei036

Cite this

@article{336d682a582f4b2599087d0050532807,

title = "Profit maximisation vs. agency: an analysis of charitable giving by UK firms",

abstract = "The charitable giving of a large sample of publicly quoted UK firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving. The empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions. Firm size and advertising intensity are found to be positively associated with the probability of participation in giving. Stricter corporate governance and the rate of directors' remuneration are negatively related to the probability of participation. Among givers, the rate of giving is related positively to R&D intensity, the rate of directors' remuneration, and corporate profitability and negatively to firm indebtedness.",

keywords = "corporate social responsibility, charitable giving, CORPORATE SOCIAL PERFORMANCE, CIGARETTE CONSUMPTION, OWNERSHIP STRUCTURE, PHILANTHROPY, HOUSEHOLDS, MEAT",

author = "S Brammer and A Millington",

year = "2005",

month = jul,

day = "4",

doi = "10.1093/cje/bei036",

language = "English",

volume = "29",

pages = "517--534",

journal = "Cambridge Journal of Economics",

issn = "0309-166X",

publisher = "Oxford University Press",

number = "4",

}

TY - JOUR

T1 - Profit maximisation vs. agency

T2 - an analysis of charitable giving by UK firms

AU - Brammer, S

AU - Millington, A

PY - 2005/7/4

Y1 - 2005/7/4

N2 - The charitable giving of a large sample of publicly quoted UK firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving. The empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions. Firm size and advertising intensity are found to be positively associated with the probability of participation in giving. Stricter corporate governance and the rate of directors' remuneration are negatively related to the probability of participation. Among givers, the rate of giving is related positively to R&D intensity, the rate of directors' remuneration, and corporate profitability and negatively to firm indebtedness.

AB - The charitable giving of a large sample of publicly quoted UK firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving. The empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions. Firm size and advertising intensity are found to be positively associated with the probability of participation in giving. Stricter corporate governance and the rate of directors' remuneration are negatively related to the probability of participation. Among givers, the rate of giving is related positively to R&D intensity, the rate of directors' remuneration, and corporate profitability and negatively to firm indebtedness.

KW - corporate social responsibility

KW - charitable giving

KW - CORPORATE SOCIAL PERFORMANCE

KW - CIGARETTE CONSUMPTION

KW - OWNERSHIP STRUCTURE

KW - PHILANTHROPY

KW - HOUSEHOLDS

KW - MEAT

U2 - 10.1093/cje/bei036

DO - 10.1093/cje/bei036

M3 - Article

SN - 0309-166X

VL - 29

SP - 517

EP - 534

JO - Cambridge Journal of Economics

JF - Cambridge Journal of Economics

IS - 4

ER -

Profit maximisation vs. agency: an analysis of charitable giving by UK firms

Abstract

Keywords

Access to Document

Fingerprint

Cite this